Oct. 2 (Bloomberg) -- Good Energy Group Plc is seeking to raise at least 5 million pounds ($8.1 million) in a corporate bond sale to help the U.K. renewable power supplier expand its electricity generating capacity more than tenfold.
The bonds will be sold in 500-pound tranches offering an annual coupon of 7.25 percent, with payments made every six months, Chippenham, southern England-based Good Energy said today in a statement. Customers of the utility who buy the four-year bonds will get an extra payment on maturity worth 0.25 percent for each year they are clients and bondholders.
The bond sale, which Good Energy described as the first by a listed company to also reward utility customers, is designed to help fund its expansion plans.
It’s seeking to develop enough renewable generating capacity to supply 50 percent of its customers’ electricity by 2016. It currently operates a single 9.2-megawatt wind farm, which provides 16 percent of supply.
“The launch of the Good Energy bonds is intended to raise finance for the group to invest in increasing its own solar and wind generation capacity,” the company said. “The proceeds will contribute to the group’s overall objective of developing 110 megawatts of its own renewable energy generation capacity by 2016.”
Good Energy, which has a market value of about 27 million pounds, said the bond issue could be as great as 15 million pounds, depending on demand. Applications to buy the bond close on Nov. 13.
The company has a pipeline of more than 200 megawatts of solar farms and wind projects in development, and yesterday said it received planning consent for a 30-megawatt solar farm in Pembrokeshire, South Wales.
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